Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Microeconomics Expert

1. The data in the table below are the outputs of a random sample of present home sales in your neighborhood that your boss has asked you to use to find out the relationship between the selling price of the house and the number of square feet in it.

Observation Number    Sale Price     (in thousands)    Square Feet (in hundreds)
1                                       280                                         20.3
2                                       328                                         30.0
3                                       281                                         21.5
4                                       293                                         25.4
5                                       263                                         14.5
6                                       291                                         22.3
7                                       320                                          31.0
8                                       256                                          37.2
9                                       311                                          27.1
10                                     352                                          30.2
11                                     288                                          21.2
12                                     356                                          37.2
13                                     293                                          23.0
14                                     272                                          26.7
15                                     308                                          26.5

a. First plot the data, with number of square feet on the “X” axis and the price of the house on the “Y” axis. Describe why housing price is the dependent variable and square feet is the independent variable.

b. What is the estimated regression line?  What does the coefficient of square feet represent?

c. Is the sample size large enough for the estimated coefficient of square feet to be statistically significant at the 5% level?

d. What is the coefficient of determination (R2)?

e. Carry out an F-test, again at the 5% level.

2. You are given the following regression results computing the demand for widgets based on time series data for the past 40 months.

Qt = 2.5 – 0.3 x Pt + 12 x Mt

Where Qt represents quantity of widgets sold per period t, Pt represents the price of widgets during period t, and Mt represents average household income of customers during period t.

You are also given the following information about regression results

R2 = 0.75    F-statistic = 23                     Durbin-Watson (d) statistic = 0.66
standard deviation of constant = 0.52;     standard deviation of P = 0.16
standard deviation of M = 2.0

a. Which of the independent variables are statistically significant at the 5% level?

b. could you reject the null hypothesis that price does not affected quantity demanded? Could you reject the null hypothesis that income does not affect quantity demanded?

c. What proportion of total variation in Q is describeed by the regression equation?

d. Is the F-statistic significant at the 5% level? What is the meaning of the F-statistic and F test?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91843

Have any Question? 


Related Questions in Microeconomics

Assignmentwhat are the most important knowledge assets at

Assignment What are the most important knowledge assets at Dirt Bikes? What functions and employee positions are responsible for creating, distributing, and using these knowledge assets? Are all of these assets explicit ...

Implicit and explicit costs economic problemsproblem achoco

Implicit and Explicit Costs: Economic Problems Problem A Choco Delite is a manufacturer of fine chocolates. Its monthly rental expense is $1,000,000. It also has $2 million in fixed labor costs. Its marginal costs are $. ...

Microeconomicsdiscussion forumnote the video has closed

Microeconomics DISCUSSION Forum Note: The video has Closed Captioning. To activate it, start the video, mouse over the bottom of the video and click on the CC icon, then select from the menu. Note: The video has Closed C ...

Problem -the table below gives the income of each of four

Problem - The Table below gives the income of each of four individuals who are in a region. Calculate and plot the Lorenz curve and calculate the Gini coefficient for this economy. individual income 1 100 2 200 3 300 4 4 ...

Assignmentchoose one of the readings from chapters 14 15 or

Assignment Choose one of the readings from chapters 14, 15, or 16 and summarize, explain, and evaluate the main points of the reading in a minimum of 3 paragraphs. Do not simply cut and paste from the reading, but summar ...

Instruction please answer all questions all questions carry

Instruction: Please answer ALL questions. All questions carry equal marks. Please do not write over 2000 words for the entire assignment. 1. a. Using the graph shown, analyze the effect a $300 price ceiling would have on ...

Intermediate microeconomics assignmentexercise 1 -

INTERMEDIATE MICROECONOMICS ASSIGNMENT Exercise 1 - Capturing surplus using a block pricing Consider a monopolist facing a linear demand p(q) = 20 - q, and marginal cost MC = 2. a) If the monopolist charges the same pric ...

Watch the video on the link belowthen answer the following

Watch the video on the link below. Then answer the following questions: 1. Would the incentives discussed in the video be able to work in a college setting? Why or why not? 2. Have you ever changed your behavior because ...

Assignmentwrite a 5-6 page paper on one of the following

Assignment Write a 5-6 page paper on ONE of the following topics. Advice: Read the question you choose very carefully, and make sure you are answering it. What you write must be clearly relevant to answering the question ...

Assignment questionsque1 why validation of the software

Assignment Questions: Que.1 Why validation of the software requirement is necessary? List some conditions that should be checked in the validation phase of software requirement. Que.2 Six Sigma is used to reduce the defe ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro